Anyone Noticing Today’s New High List?

My first love when reviewing the equity markets is to scan the 52-week new high low list. This list is always informative and tells you where the money is going. With the media focused on Facebook, and the endless stories, or should I say non-stories, of Europe the new high low list can hold some surprises.

Well today was such a day. Four Home Builder stocks made the new high list, M/I Homes (MHO), Mertiage Homes (MTH), NVR Inc. (NVR) and Toll Brothers (TOL). Here are the long-term charts of each from our Facebook app.

M/I Homes (MHO)

M/I Homes with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

For those interested, a daily updated chart of MHO subsequent to this post will be maintained on Facebook, here.

Meritage Homes (MTH)

Meritage Homes with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

For those interested, a daily updated chart of MTH subsequent to this post will be maintained on Facebook, here.

Toll Brothers (TOL)

Toll Brothers with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

For those interested, a daily updated chart of TOL subsequent to this post will be maintained on Facebook, here.

All three of the above names, after hitting valuation highs in mid 2005, have been in a bear market for almost 7 years. This is obviously good news, not only for this sector, but also for the American economy as a whole.

The other surprises on the 52-week high list was Walmart (WMT) and Bed Bath & Beyond (BBBY).

Wow, what is going on here?  One thought is that 3 or 4 years ago, an investor wanted international companies in your portfolio to leverage international growth (China) over US domestic companies with the US going into recession.  Now with Europe and a possible slowdown in China, and US domestic growth picking up relative to the rest of the world, equity money flows seem to be favouring US domestic companies.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s